Hanwha Bank Hungary Zrt, owned by South Korea's Hanwha group, will privately place €10 million worth of five-year subordinated bonds on October 18, the bank announced in the capital market gazette Magyar Tőkepiac on Monday.
The bonds will be subscribed by Hanwha Securities Co, the Hungarian unit's majority owner. The issue has been designed to help maintain the rapid growth of the bank's loan portfolio, the bank said, noting that thanks to mortgage and SME lending, the bank's stock of loans has tripled since 2003.
The bank also announced it posted pre-tax profit of Ft 250 million in the first nine months of 2006, 35% more than a year earlier. According to earlier figures, Hanwha Bank Hungary's pre-tax profits slipped 30% to Ft 138 million in 2005. The bank had total assets of Ft 12 billion at the end of 2005, 1% more than a year earlier. Net assets increased 17% to Ft 5.785billion during the same period.